NBS: Nigeria earns N808b from VAT

About N800 billion was realised from Value Added Tax (VAT), data from the National Bureau of Statistics (NBS) have shown.

According to the NBS, the revenue was generated from sectoral distribution spanning the first to third quarters (Q1-Q3) of last year.

VAT is a consumption tax imposed on a product whenever value is added at each stage of the supply chain, from production to the point of sale.

Sectoral Distribution of       VAT for Q2 and Q3, 2018 posted on the bureau’s website, showed an increase in the revenue generated from VAT during the year  review period.

The report showed that  269.79 billion was realised in the first quarter, N266.73 billion in the second quarter and N273.50 billion came in as VAT in the third quarter in that order.

The figures represented an increase of 2.54 per cent quarter-on-quarter, and 9.16 per cent increase year-on-year.

Also the report showed that the manufacturing sector generated the highest amount of VAT averaging  N31.48 billion, and closely followed by Professional Services and Commercial and Trading, both generating N25.57 billion and N15.99 billion respectively.

It further stated that the mining sector generated the least, closely followed by Pharmaceutical, Soaps and Toiletries and Textile and Automobiles and Assemblies with N52.70 million, N177.34 million and N265.35 million respectively.

In addition, it stated that out of the total amount generated in the third quarter of 2018, N128.62 billion was generated as Non-Import VAT locally, while N58.84 billion was generated as Non-Import VAT for foreign.

The report however noted that the balance of N86.04 billion was generated as Nigeria-Customs import VAT in the year.